The Money Gusher Says There's No Stocks Bubble Yet
Relative to a gauge of global liquidity, markets don’t look as extended as they were in 2000 or before the global financial crisis.
There's no need to worry, as long as the liquidity keeps flowing.
Photographer: Sean Gallup/Getty Images
A new month, and a new attitude to menacingly rising bond yields. Strong manufacturing data from the U.S. and western Europe, and a rebound for Treasury yields, didn’t stand in the way of a rally in stocks. U.S. equity markets are almost back to all-time highs. GameStop Corp. shares rose again, as did the prices of bitcoin (up 14.4% from its Sunday low at the time of writing), and Tesla Inc. (up 6.5%).
This renewed optimism may or may not persist. But it is worth returning to the debate that was consuming commentators until last week’s reflation spasm: Is the U.S. stock market in a bubble?